Foreclosures creating buyer's market in 59912

The real estate downturn hasn’t left Columbia Falls unscathed, with a host of properties in the 59912 ZIP code facing foreclosure.

But having said that, the market is also turning up some prices the fair city hasn’t seen in decades.

For example, one foreclosed three-bedroom, one-bath home with a finished basement on Crescent Drive is listed for about $146,000.

Crescent Drive is largely considered one of the nicest neighborhoods in the city.

In the 59912 Zip code a total of 14 properties are listed for trustee sale and another 16 owned by banks, according to the site, RealtyTrac.com. They range from $17,802 for a timeshare in Meadow Lake to an $800,000 property on Penney Lane.

RealtyTrac farms foreclosures and bank and government-owned property listings across the U.S. and puts them on one site. Viewers can see the listings for free, but more in-depth information on the properties, such as the complete address, aren’t listed. Users have to pay a fee for that information.

The site also simply lists homes that are for sale. Hilary Anderson is a real estate agent with West Venture Properties who advertises on the site.

She said her main business is to help homeowners avoid foreclosure altogether by selling their home before they can no longer make payments, but she helps buyers as well.

The reasons for the spike in foreclosures here are many and varied — people are losing jobs, have too much debt, are going through divorce and some have high medical bills.

Whatever the reason for the seller’s woe, it’s a creating a buyer’s market — provided the buyer has a good credit rating and enough cash for a down payment.

Anderson said she expects to see more foreclosures, not fewer, in the coming months and years.

Some home buyers that had adjustable rate mortgages should see a spike in their rates in the first quarter of 2011, she said.

Local Realtor Bill Dakin of RE/MAX Mountain View also noted that the market was bound to make a correction. He said the county as a whole simply has too many subdivided lots for sale to meet demand. Couple that with a depressed economy and you have conditions that are ripe for a softening of the real estate market.

“The crisis is one of confidence and income,” he said.

Dakin said he expects the market to firm up, but the glut of subdivided lots could take eight to 10 years for demand to absorb the existing supply.

And buying a foreclosed home isn’t always a bargain, note staff at the Flathead County Clerk’s and Recorder’s office. A person can search the county computers for trustee sales by going to the office in person or for a fee on the Web.

But it’s also a case of buyer beware. Some homes have two and three mortgages on them, so buyers need to check to see what liens are on a property before they make a bid. There may be back taxes as well.